All Forum Posts by: Brian Ploszay

@Bill Brandt    Keep in mind, the mortgage securitization industry collapsed back then.  Watch for an uptick in foreclosure filings if you think something is coming.  I personally do not.  Lots of folks have positive equity in their properties.  Vegas, on the whole, is a strengthening MSA.  

Las Vegas was one of the epicenters of the foreclosure crash, roughly 11 years ago.  Folks who scooped up properties and turned them into rentals had once-in-a-life-time superior returns.

==Long term tenants==   Sounds so sad, but might they really be underpaying tenants?  At least that is what the market place might say.   I am sympathetic to areas that get gentrified, and long term tenants find their spaces cost more than they can afford.

I ran into this situation a couple of years ago.  I just kept them there.  

Another tenant, I jacked up the rent, but not to full market value.  The tenant accepted it.

==How is this sustainable in the long term==   It isn't.  The market dictates.  So if the prices go up enough, demand will become more normalized.   

@Russell Brazil    With inflation, shouldn't interest rates eventually rise?  

@Jay Hinrichs    You mentioned a very interesting point on this thread - that you have to buy properties that appreciate.  Cash flow properties just pay the bills.   I've been thinking about this, and to some extent you're right.  I made more on appreciation than cash flow.  But you can gain equity from many different ways - not just buying into a hot market.  For secondary markets, equity can be captured if you buy a distressed property and renovate it to a more attractive position.  My biggest equity plays actually came out of the 2009-12 real estate meltdown, buying lower middle class housing.  Eventually the values bounced back.

This happens to all of us.  Normally, properties do not have continuous high repair bills, unless they are very deficient properties.  And those you should never invest in.

Here is an example of lost cash flow:  Simply replacing a roof wipes out more than a year of cash flow.  

You mentioned cutting down a tree - I think that large trees on rental properties are huge liabilities.

Great Post.   Here are some of my finds, but not scary.

1.  A beer bottle dating from 1880s.  

2.  An attic full of porn magazines.  Probably 1000 of them.  I did not keep any of them by the way...

And my scary finds:

1.  Body in the alleyway, up against my back fence.  

2.  Two heroin addicts passed out inside the basement

3.  Various handguns.  Which I made inoperable with a sledgehammer and then tossed them into trash.  

@John Teachout    That is indeed the way it is in Chicago.  If you can't deliver it in person, then you have to hire a "process server"  which doesn't call that much.  If he fails to deliver, then you can proceed to court.

Luckily, I don't have many evictions.  Avoiding them is a big part of my business plan;  they are expensive.

Anyway, my point in this thread was for him to understand the process for an eviction.  Even easier states have their required process.

@Dan Gustavson    Make sure that you do everything by the books.  In my region, we have to give "5 day notices,"  in a legal format.   And deliver it in person.   A vacate notice on a door would not be considered a legal notice by the court.